“Why is he delaying the matter? Is he bound by some agreement he made with the fifth premier (Abdullah Ahmad Badawi) who was instrumental in cancelling the project in the first place?” asked Dr Mahathir in his blog.

The outspoken former prime minister also took a swipe at Abdullah for cancelling the project in the first place.“As far as I know, he was the only who was adamant on keeping the causeway. Even the then Singapore premier Goh Chok Thong was not against the bridge project,” he added.

In April 2006, Abdullah scrapped the scenic bridge project linking Johor Straits to Singapore, saying it was a political decision.

His decision unleashed Mahathir's fury against him as the idea was mooted by the former during his premiership. He went on a crusade against Abdullah till the latter left office in April 2009.

On June 26 this year, Najib said that he will look into reviving the project after the Sultan of Johor, Sultan Ibrahim Sultan Iskandar, requested the government to revisit the cancelled project.

Mahathir urged the government to get the project going as the people are waiting for the government to make a decision and its dily-dalying tactics do not reflect well on the administration.

“I believe the people have the right to know if the project will be revived,” he said.

Tuesday, June 29, 2010

Or at least for the current wearer of the king's hat, who gets to stay there for five years

Well-placed sources in Kuala Lumpur told Asia Sentinel that the RM811 million figure is only preliminary. The total cost is actually nearing RM1.2 billion and is expected to go higher, the sources said, with both the Sultan of Perlis, who retired as Agong in 2006, and the Sultan of Terengganu, who took his place, becoming hidden partners with Malaysia's seventh richest individual, Syed Mokhtar Al-Bukhairy.

THE CORRIDORS OF POWER

Asia Sentinel

On June 23, speaking to the Regional Cambridge International Symposium on Economic Crime in Kuala Lumpur, the Domestic Trade, Cooperatives and Consumerism Minister, Ismail Sabri Yaakob, outlined broad efforts to improve transparency and confront corruption, saying all reported cases will be fully investigated regardless of the position or status of those involved and that punishment will be swift and harsh.

But before the policy can be fully implemented, there is the matter of the cost of building a new national palace for the country's sultans, which has doubled from RM400 million (US$124.2 million) to RM811 million since the contract was let – without bid -- in 2006 under the premiership of Abdullah Ahmad Badawi, and may well triple, according to government insiders.

Under Malaysia's system of rotating kingships between the country's nine sultans, each assumes the title of Yang Di-Pertuan Agong and lives in the Istana Negara, or national palace, for five years before moving on – or uses it as a ceremonial residence during his reign. Each has his own palace in his respective sultanate. The grounds of the new one, to be built on a hill, will cover a massive 96.52 hectares, according to the government.

Well-placed sources in Kuala Lumpur told Asia Sentinel that the RM811 million figure is only preliminary. The total cost is actually nearing RM1.2 billion and is expected to go higher, the sources said, with both the Sultan of Perlis, who retired as Agong in 2006, and the Sultan of Terengganu, who took his place, becoming hidden partners with Malaysia's seventh richest individual, Syed Mokhtar Al-Bukhairy.

"Syed Mokhtar got the original contract at RM400 million. Then the Raja of Perlis was given a gratuity and his brother, Syed Anwar Jamallulail, became Syed Mokhtar's 30 percent partner and costs escalated," said a source. "When the current king came in – the Sultan of Terengganu -- he asked for a piece of the action and costs went up again. It was brought up in cabinet in December by an MCA minister. [Mohamed Nazri Abdul Aziz, minister in the prime minister's department for parliamentary affairs] replied: "So what? It's the house of a Malay King, not a Chinese contractor." Needless to say, no one has brought it up since."

The favoritism allegedly shown on the Istana contract presents a challenge for Najib, who has publicly vowed to clean out rent-seeking and preferential treatment in government-linked contracts in his campaign to clean up Umno's tattered reputation.

Opposition Leader Anwar Ibrahim alleged on the floor of parliament last week, for instance, that the land under the 115-year-old Pudu Jail, which is being torn down, is being handed over to Vincent Tan, another longtime Mahathir crony and head of Berjaya Corp. Anwar accused the government of handing out contracts worth billions of ringgit to favored individuals.

The next big test will probably be the construction of a new building to house the Dewan Rakyat, or Parliament, whose current building is an exemplar of the tacky architecture that the third world thought was modern when it was built in 1962 and when Malaysia was a third-world country. The project has been shelved for the time being because of lack of money but it will probably resurface as the economy improves.

Although the construction consortium building the Istana Negara includes the Bumiputra firm Ahmad Zaki Resources Sdn Bhd with partners Kejuruteraan Kenari Sdn Bhd. and Maya Maju (Malaysia) Sdn Bhd, there are widespread reports in Kuala Lumpur that although his name appears nowhere, the construction operation is actually headed by Syed Mokhtar.

A onetime roti canai seller who was born into a poor Kedah family of Arab descent, Syed Mokhtar amassed more than US$2 billion in assets and made the Forbes Magazine list of richest individuals partly due to government contracts, primarily as a result of his close relationship with former Premier Mahathir. Today, his business empire encompasses plantations, property development, construction, engineering, power generation, infrastructure and ports.

Deputy Minister Yong Khoon Seng told reporters the construction of the main complex was awarded to Maya Maju Malaysia Sdn Bhd at a sum of RM650 million, while a contract for the flyover from Jalan Duta to the palace was given to Ahmad Zaki Bhd.

The palace is far behind schedule and is scheduled to be completed by 2011. The contract for the upgrading of a flyover to the new palace will cost an additional RM150 million. Malaysia has been abuzz for days since the cost overruns were announced over the identity of Kejuruteraan Kenari and Maya Maju. Both are listed in Malaysia's corporate registry with a flock of officers that nobody seems to know.

Then there is the question of why, with Malaysian politicians making public pronouncements that the country will go bankrupt unless subsidies for the poor are withdrawn, a new Istana is needed at all. The current one, built in 1928 as the onetime home of a Chinese tycoon, stands on 11 hectares of grounds in the middle of Kuala Lumpur. It has undergone a long series of renovations going back to World War II when it was used as a Japanese Army mess hall. It was refurbished in 1986 at a cost of RM70 million.

It is difficult to say just what the RM811 million actually includes. Some critics say the costs for equipping the new building do not include furniture, lighting, air conditioning and a wide variety of other charges that can be expected to drive the total price tag far higher.

"For Umno," wrote one critic to The Malaysian Insider online news portal, "all projects MUST undergo an increase of minimum 40 percent of total budget in order for it to be completed in triple the estimated time. If not, then that person isn't a loyal Umno member."

KUALA LUMPUR, June 29 — The Najib administration said today that it will pay Kuala Dimensi Sdn Bhd (KDSB)’s bondholders the RM722 million owed them by KDSB for 2010.

In replying DAP’s Lim Kit Siang’s question in Parliament, Deputy Transport Minister Datuk Abdul Rahim Bakri said the government had a “commitment” to the bondholders and that payment needed to be made.

“We have a commitment to the bondholders. We have to make payment and honour that commitment,” said the deputy minister.

Lim had asked whether the government, through the Port Klang Authority (PKA) should not pay KDSB since PKA was in a legal dispute with KDSB, and instead set up a (escrow) third-party account to hold the money.

After Abdul Rahim’s reply, Petaling Jaya Utara MP Tony Pua (picture) pointed out to Abdul Rahim that PKA’s commitment was not to KDSB’s bondholders, but KDSB itself which is the main contractor to the Port Klang Free Trade Zone (PKFZ).

But the deputy minister did not respond to Pua’s argument.

Abdul Rahim later on maintained his remarks made in Parliament.

“Of course we are paying the bondholders because they have already given their money to KDSB to build the project,” said Abdul Rahim to The Malaysian Insider.

But the deputy minister said that the government will not be footing the bill for KDSB’s oustanding taxes to the Inland Revenue Board (IRB) amounting to RM328.4 million.

“They(IRB) asked but the money is not meant for KDSB anymore, the money is meant for the bondholders as they have financed the project. They can claim direct from KDSB, they cannot claim from the government. If you don’t pay the bond, then it’s risking of our rating,” said Abdul Rahim.

Earlier on during a press conference, DAP’s Pua said that the government should withhold whatever payments due to Kuala Dimensi Sdn Bhd (KDSB) until its RM1.4 billion legal suit with PKA (Port Klang Authority) is settled.

“The government should withhold whatever payments due to KDSB until the legal suit is resolved,” said Pua.

PKA filed a RM1.4 billion legal suit back in 2009 against KDSB for fraudulent and excess claims. The case is still pending.

Pua’s prediction was that the government would in the end bail out KDSB from its financial woes, and used 2009’s example where PKA was instructed by the Ministry of Finance to make an instalment payment of RM660 million.

“PKA has accordingly informed the various KDSB bondholders of its intent to withhold 2 payments-RM230 million due o June 30 2010 and RM120 million due in July 2010- for the purposes of settling the outstanding income taxes of KDSB.

“The KDSB bondholders are understandably upset with the development as there is a likelihood that they may not be paid for the loans extended to KDSB. However based on the previous action taken by the Ministry of Finance, they will once again insist that PKA make full payments amounting to RM722 million to the bondholders to fulfil the “guarantee” which has been provided by the government by virtue of the letters of guarantee signed by Tan Sri Chan Kong Choy,” said Pua.

He claimed that in the end, the bondholders would be able to recover their “investment” with interest while KDSB would not need to fork out a single sen of tax.

JUNE 28 — HRH the Sultan of Johor has publicly asked the government to reconsider construction of the infamous crooked bridge. Some bloggers have joined in the call on the government to do so. The bridge was conceived by the 4thPrime Minister of Malaysia. PM Najib said, he will look into it.

When Dr Mahathir mooted the idea, he wasn’t just motivated by commercial impulses, i.e. some contractors will get rich with the project. The same will happen if the bridge is approved by PM Najib. Dr Mahathir was also motivated by strategic reasons. We aren’t sure if this is the case with PM Najib.

You can already see the contrasting approaches between the former and present PMs. Dr Mahathir was all for the agreement and details of transaction with Singapore be made public. PM Najib prefers doing things on the quiet which is discomforting to Malaysians in general. No disrespects to Singapore, but ordinary Malaysians have this perception that in making deals with Singapore, they are always steps ahead. With a reticent and prone to reversals and retractions PM leading our country, we aren’t sure what PM Najib has got himself into.

Will the PM consider this royal call? It all depends on the agreement ratified between the PM of Singapore and Malaysia recently. Until details of the agreement are made public everyone is in the dark. We wish our PM is forthcoming in the details of the agreement. The devil is in the details.

Otherwise, this muted treatment of the agreement will be treated with suspicion. What took ages to be resolved can be settled in a few hours meeting. OUR MPs must ask the question and the PM cannot NOT answer their questions in parliament.

The POA inked by Tun Daim included certain outstanding items to be resolved. The basis for resolving the issues is of course the handling of the KTM land in Singapore. In all the land is 271 hectares in size which is about 654 acres. In exchange for developing the KTM land in accordance to the host country, all KTM activities will be relocated at a new mega terminal in Woodlands. That new centre is expected to be completed in 2011.

The 271 hectare KTM land comprising of lands in Tanjung Pagar, Kranji, Woodands and 3 lots in Bukit Timah will be jointly developed by a company known as M-S Pte Ltd- I suppose its Malaysia-Singapore Ltd. The company will be divided on a 60:40 ratio; the former being Malaysia’s interests held upon trust by Khazanah Malaysia. I want to term it upon trust signaling that always, whatever Khazanah does, it’s done for and in the interests of Malaysia. Lately, this basic idea behind mandates given to Khazanah seems to be violated at every turn and corner.

Now back to the original question to which PM Najib has said he will look into it. To my mind the crucial link will be in the construction of the Rapid Transit System (RTS) which will link Woodlands and Tanjung Puteri in Johor. Where will this RTS traverse? If it is build using the existing causeway as the land link, then, the answer as to whether the century old causeway will be demolished is academic. It will not be demolished if the RTS is build using the causeway as the link.

How will we solve this problem if PM Najib heeds the call by HRH Sultan of Johor and Johoreans in general? The possible solution I guess is to build an underwater channel linking Johor and Singapore. That will allow the causeway to be demolished and a new bridge constructed to link the two countries. But lets hear what engineers say about this.

Who will manage the new WTCP at Woodlands later? If it’s done the Singapore way, it will be run purely on commercial principles with a view to profit making. Looking at this positively, it will galvanize KTMB into adopting a new business culture which hopefully will discipline KTMB into operating more efficiently and profitably.

But, it will have to pay hefty service charges to the WTCP. It will make profit purely from operations as there will be no more assets to parlay with Singapore Inc.

Suarez (right) celebrates his second goal with team mates during their match against South Korea in Port Elizabeth today, June 26, 2010. — Reuters pic

PORT ELIZABETH, June 26 — Luis Suarez scored a goal in each half to give Uruguay a 2-1 win over South Korea today and take them to the World Cup quarter-finals for the first time in 40 years.

Suarez netted in the eighth and 80th minute of a match that looked to be headed for extra-time to crush the Koreans’ dreams of reaching the last eight for the first time on foreign soil.

Uruguay took the lead when Suarez capitalised on some horrendous Korean defending, coolly slotting home an incisive cross from Diego Forlan that caught the entire defence napping.

Edinson Cavani neatly curled the ball out wide to Forlan, whose low pass cut through the sleeping Korean defence to the unmarked Suarez, who side-footed into an empty net.

Park Chu-young had almost drawn first blood in a bright start for the Koreans when his fifth-minute curling free-kick from 20 metres struck the upright with the keeper beaten.

South Korea had most of the chances after that and came out fighting after the break. They went close through Kim Jae-sung, Park Chu-young and close to the hour mark Park Ji-sung’s header forced a save from Fernando Muslera.

The pressure finally paid off on 68 minutes when Lee Chung-yong headed a poorly-cleared free kick into the net from close range.

Their celebrations were shortlived though. With just 10 minutes of normal time remaining, Suarez picked up a loose ball and curled in a superb shot off the post.

There was still time for the Koreans to almost force another equaliser when Lee Dong-guk’s shot went through the keeper’s legs but lacked the power to cross the line. — Reuters

KUALA LUMPUR, June 26 — Datuk Seri Dr Mohd Khir Toyo has turned out to be an unlikely believer in Tan Sri Khalid Ibrahim, saying the embattled Selangor mentri besar will remain in power despite reports of a internal coup within PKR to unseat him.

Khir claimed that PKR lawmakers had been dissatisfied with Khalid’s running of the state for some time, but said the rebellion would not amount to anything as the mentri besar had the support of allies DAP.

“It will quite impossible to remove Khalid as mentri besar. First of all Khalid’s support in Selangor is strong, very solid.

“Khalid is there because of DAP, not because of PKR. There is full support from Khalid to remain as MB. Several DAP leaders have confirmed that with me,” Khir told The Malaysian Insider in an interview.

The former Selangor Mentri Besar went on to say that PKR did not call the shots to the governing of the state, and claimed that the position of MB was subject to the approval of DAP. Cerita penuh di sini...

By Clara ChooiJune 25, 2010KUALA LUMPUR – Former Land and Co-Operative Development deputy minister Datuk Dr Tan Kee Kwong today brushed off Felda's defamation suit threat, and called the Umno deputy minister who announced the suit “an idiot.”

Deputy Minister in the Prime Minister's Department Datuk Ahmad Maslan told a press conference this afternoon that Felda would be filing a defamation suit to the tune of hundreds of millions of ringgit against all those who were involved in the allegation claiming Felda was bankrupt.

Several PKR leaders, including Tan, Datuk Seri Anwar Ibrahim, Datuk Zaid Ibrahim as well as Suara Keadilan, its owners and chief editor, a PAS MP and several reporters are expected to be named in the suit, set to be filed soon.

Tan, who is now with the PKR after leaving Gerakan, however remained nonchalant and maintained that 100 per cent of Felda settlers were in agreement with him.

“Think very carefully about whatever that idiot (Ahmad) is saying... you can call him that, an idiot. You may not be an expert in oil palm but look at what happened in the figures.

“How can, when the authority had cash of about RM4.5 billion and no borrowings before (Prime Minister Datuk Seri) Najib (Razak) took over, how can any company mess up with such a healthy balance sheet?

“God only knows,” he told The Malaysian Insider today.

He said that with such a robust financial standing, the land development authority should not witness a depleting cash reserve.

He told Ahmad not to continue “talking nonsense” and advised Felda to stick to its core business.“Stick to your core business. Do not rip the Felda settlers off. Stop talking nonsense. Do oil palm, there is plenty of money in this business.

“Why do you need to invest in the US? What technology does the US have in oil palm?

“You are supposed to be providing land for the landless and you are dealing with what we call black, edible oil... it is like black gold,” he said.

He pointed out that crude palm oil (CPO) prices over the past few years had been very high and this should help Felda's cash reserve grow.

“How can you mess up like this, especially when other companies have been profiting?” he said.

When Tan recently raised the issue of Felda's depleting cash reserve, Ahmad had in Parliament admitted that the authority was facing a decline in its cash pile.

In his press conference today, the deputy minister reiterated that while it was true that Felda's cash reserves had declined RM2.73 billion from RM4.08 billion in 2004 to RM1.35 billion in 2009, its current and fixed assets had risen as much as RM6.2 billion from RM9.17 billion in 2004 to RM15.37 billion in 2009.

Ahmad also pointed out that at present, Felda, the world's largest plantation operator, had net assets worth RM12.2 billion and had investments around the world in countries like Indonesia, South Africa, China, Turkey, US, Canada, Pakistan, Australia, Thailand, France, India and Saudi Arabia.

“What assets? It is ok. Let them prove this. I will stick to what I have said,” Tan insisted, sounding increasingly frustrated.

When contacted, Zaid brushed off the prospect of being sued and defended himself by saying he had never called Felda “bankrupt.”

“Was Felda embarrassed with what we said? We will have to see the truth,” he said.

He pointed out that at least now, the government was finally revealing the details of Felda's financial situation.

“At least all this caused them to give out this information. It is good because prior to this, no one knew what was happening in felda, about its overseas investments, about its returns,” he said.

PETALING JAYA: PKR supreme council member Zaid Ibrahim believes that party de facto leader Anwar Ibrahim should sack the 15 MPs who are allegedly plotting a “Selangor rebellion”.

News broke of an alleged revolt against Menteri Besar Abdul Khalid Ibrahim by a group of 15 MPs aligned to PKR vice-president Azmin Ali, who recently resigned from the board of Selangor State Corporation on Wednesday. Azmin has denied any involvement in the alleged plot.

According to reports, the group is dissatisfied over the unilateral manner in which Khalid appointed his new political secretary, Faekah Hussin, as well as his inability to make quick decisions.

An exasperated Zaid, however, called the move “a blatant show of indiscipline” and criticised the 15 MPs' disrespect for authority.

“This issue of Khalid has been going on for over a year,” he said. “At the recent party congress, (party president) Dr Wan Azizah (Wan Ismail) clearly said that Khalid was not going to be removed and Anwar reaffirmed this statement. Once the top leaders have made a decision, the rest of the leadership are expected to follow suit.”

“It's not just Khalid who is on trial but the the credibility of the whole party leadership. If Anwar and Wan Azizah's words don't carry weight within PKR, then how can it mean anything to the rest of the world?”

Zaid observed that Anwar's leniency has encouraged brazenness among the leaders and called on him to start putting his foot down. He also expressed annoyance over the longstanding argument that a firmer stand would drive people to abandon ship.

“Let them jump!” he said. “Let them join (prime minister) Najib (Tun Razak), enjoy the two-thirds and do whatever they want. But PKR is a reform party that has to stick to certain principles and if that means settling for a small but committed pool of leaders, then so be it.”

Zaid added that he found it odd that the pressure for Khalid's removal came from MPs and not state assemblymen and councillors.

“The assemblymen and councillors know him best... they seem to have no problems with him,” he said. “DAP and PAS have also been silent. They are very seasoned parties and if Khalid is a liability, they would have surely spoken up. They want to win the next election too, you know.”Stop behaving like Umno

While he is staunchly against Khalid's removal, Zaid advised disgruntled leaders to use the proper channels if they truly wanted him to step down. He outlined two avenues for doing so – through the party election and vying for the presidential position.

“If you want to be the menteri besar, then aim for the number one position in PKR,” he said. “Stop this power play which only drives you to do silly things that make the headlines. Right now, PKR leaders are behaving like Umno by holding secret meetings and then a surprise press conference.”

Zaid also likened PKR to Umno in its belief that the party must control the state government. He said that such a belief belongs to a communist party and PKR should steer clear of such ideology by respecting the institution of the state.

“Selangor is all we've got and our priority should be safeguarding it,” he said. “If we owned two-thirds, we would have the luxury of playing such games.”

“This is the time for PKR to show resilience, strength, unity and respect but these are also things that it needs to earn from the rakyat. We can't dole out projects like Najib does or offer to strike deals with certain people.”

“PKR has nothing to offer but leaders who are credible and who command respect for their sincerity in their struggle. These are the leaders we want. And if we don't have them, then we have nothing.”

SHAH ALAM, June 24 — Selangor has recruited popular Islamic scholar Dr Badrulamin Baharom to “reach out” to the key Malay electorate in rural areas ahead of the next general election, similar to Umno wooing maverick cleric Dr Mohd Asri Zainal Abidin.

The lack of support from the community remains Pakatan Rakyat’s (PR) weak link and this reality hit home following the Hulu Selangor by-election in late April.

Despite being the incumbent, PKR failed to retain the semi-rural Malay-majority seat. For Umno, Dr Mohd Asri’s entry to the party can help shore up urban Malay support but the ex-Perlis mufti’s attack yesterday against the Barisan Nasional (BN) has cast doubts about his membership.

that his role was to help Selangor’s information team tackle the rural Malay vote.

The mentri besar also acknowledged that while Selangor is a well-developed state, there were areas that were outside state government’s reach.

State officials said Badrulamin’s credentials and background made him well suited to tackle rural Malay voters who are staunchly pro-Umno.

His qualifications include a degree in Islamic studies from the renowned Al Azhar University in Cairo, a masters degree in Comparative Law from Kent University and a doctorate in Islamic Constitutional Law from Birmingham University.

The PKR loyalist is a recognisable face in the Malay community as he was also preacher in the religious sermon circuit.

He was briefly detained without trial under the Internal Security Act in 2001 and 2002 for allegedly trying to topple the government.

State government sources disclosed that Badrulamin will be based at an office outside the state secretariat to enable him to hit the ground running.

They acknowledge that Badrulamin has an uphill task and limited window of opportunity because snap elections are expected as early as next year.

Wednesday, June 23, 2010

After a gruelling seven days, the public inquiry into possible misuse of funds by Wives of Selangor Elected Representatives Charity Organisation (BALKIS) ended yesterday, leaving those who attended reeling from the revelations.

For more than a week, details of money spent on exotic trips, overseas souvenir - shopping expeditions and gifts for guests attending glitzy functions, kept members of the Selangor State Assembly's Select Committee on Competency, Accountability and Transparency (Selcat) riveted as the figures continued to rise.

The inquiry is the first to be conducted by a State Legislative Assembly in the country. Other states are widely expected to follow suit following the conclusion of the Balkis inquiry.

Yesterday, PNSB chief executive officer Datin Khairiyah Abu Hassan dropped a bombshell when she further revealed how much the State-owned conglomerate had forked out for former Selangor Menteri Besar Datuk Seri Mohd Khir Toyo and his family's expenses during the overseas technical visits.

She also drew hoots of laughter when she explained the reasons for the trips.

Dr Khir, his wife, daughter and maid also went on the trip. The purpose was for delegates 'to study' Indonesia's batik production which was supposed to lead to the opening of a batik factory in Selangor.

Cost of airfare for Dr Khir, his wife, daughter and maid: RM37,695Miscellaneous cost incurred by the delegates: RM34,404Spent on two-day rental of a limousine / Mercedes Benz in Jakarta: RM5,800 Paid for two-day rental of a limousine / Mercedes Benz in Jogjakarta: RM5,000

A 'technical study' on the Bagan Lalang theme park was also the pivotal reason for the trip. The group, comprising Dr Khir, his family and PNSB delegates, bought tickets to DisneyWorld and again did not meet any Disneyland representatives.A tour guide instead took them around.

Cost of Dr Khir's luxury suite: RM110,000Cost of six single superior rooms for the delegates: RM171,000Cost of one twin-sharing room: RM24,800

Khairiyah claimed that on the trips, Dr Khir and his wife flew only first class.

The itinerary of the US trip also included visits to Miami Beach, island tours, dinner cruises and a Honolulu city tour.

Dr Khir and his wife, supposed to have been key withesses, failed to turn up for any of the inquiry proceedings.

Dr Khir would be referred to the Committee of Privileges while Zaharah could be prosecuted under Section 5 of the Contempt of the House Act 2008. The inquiry's findings will be presented at the next sitting of the Selangor State Assembly in July.

The Malaysian Anti-Corruption Commission is expected to investigate possible criminal breach of trust (CBT) once Selcat concludes its findings and police conclude their investigations.

11 September 2009 - Khir Toyo was called for questioning by MACC but he was let go after some greetings and minor questions. Why didn't they keep him overnight like Teoh Beng Hock and then see if he jumps to his death from Plaza Masalam?

Thank you for giving up your hard earned tax ringgit so that they can enjoy a luxurious elite lifestyle, travelling all over the world and living like kings without having to work for a single cent. Be a good rakyat - Vote for BN?! Give UMNO more money.

KUALA LUMPUR: The Shah Alam Hospital saga has taken an “Ali Baba” twist with revelation that the main contractor for the RM482 million project did not do any work at all and yet had made a handsome profit.

Speaking at press conference at Parliament today, Pua produced two documents which clearly showed that the whole project was being carried out by the sub-contractor, GM Healthcare Sdn Bhd, and not the main contractor, Sunshine Fleet Sdn Bhd.

One document stated that a letter of award was given to a sub-contractor, Isyoda (M) Sdn Bhd, a company which eventually had to opt out after it was delisted from Bursa Malaysia.

The project was subsequently given to GM Healthcare.

“In the letter of award, it was stated that RM451 million would be given to Isyoda while Sunshine Fleet (the main contractor) would receive RM482 million from the government.

“So the main contractor gets a net profit of RM31 million… this is a clear ‘Ali Baba’ project. The PWD needs to take action against Sunshine Fleet...,” he said.

Pua said the fact that Sunshine Fleet is making a net profit without doing any work (since the whole project is handled by the sub-contractor) contradicts the terms of the contract awarded by the ministry.

Pua also said that a second letter by Isyoda to Sunshine Fleet showed that the former had promised a payment of RM46 million to the Sunshine Fleet chairman personally, and not through the main contractor.

'Unconditional payment'

The unconditional payment, according to the letter, was in consideration of Sunshine Fleet’s “efforts to procure the letter of award to be issued to us in further consideration of your future contribution and cooperation to ensure the smooth operation and success of the project”.

It also said that the RM46 million would be paid by instalments. From this amount, said Pua, Isyoda promised to pay 9.5% progressive interim payments to the Sunshine Fleet chairman totalling RM77 million.

“This is seen as a commission for this contract. But is it really a commission or a bribe? We have given this to the MACC for further investigation,” he said.

Shah Alam Hospital is reportedly bogged down in a legal tussle between Sunshine Fleet and GM Healthcare, giving rise to fears that the project will not be completed on time.

But Works Minister Shaziman Abu Mansor dismissed such fears, saying that the project is on track.

Besides, he told Parliament today that the government is only responsible to the main contractor and has no authority over payments to the sub-contractor.

It has been reported that GM Healthcare has filed a petition to wind up Sunshine Fleet over a RM10 million debt.

Sunshine was served the notice on April 1 this year after it failed to pay the RM10 million owed to GM Healthcare. The RM10 million is the bond GM Healthcare had placed with the Public Works Department (PWD) on behalf of Sunshine Fleet for the design, construction, equipping, commissioning and maintenance of the Shah Alam Hospital.

'No action against Sunshine Fleet'

In reply to Pua, Shaziman said that as long as the project is on schedule, the PWD will not take action against Sunshine Fleet.

However, he said that a new law, Construction Industry Payment and Adjudication Act, will be introduced to ensure sub-contractors are paid on time.

“This will help protect sub-contractors who do not get any payment from the main contractor,” he said.

Shaziman also said that the PWD has not detected any breach of contract allegedly committed by Sunshine Fleet.

“In view of this, the question of the project being delayed or the contract being terminated does not arise. This is because the project is on track and (the parties) have observed the terms of the contract agreed to by the government,” he said.

The hospital, which was slated to be completed in November this year, will be ready by June next year.

Opposition MPs have repeatedly raised the issue, alleging that there were discrepancies in the contract PWD awarded to Sunshine Fleet through direct negotiation in 2007.

The situation took a turn for the worse when the board of directors of Sunshine Fleet, many of are related to the Sultan of Selangor, became involved in the legal squabble.

KUALA LUMPUR: UEM Builders Bhd has been making “outrageous” demands for financial assistance for the construction of the second Penang bridge, a state assemblyman charged today.

And the federal government is bowing to this government-linked company, said Sim Tze Tzin, Pantai Jerejak PKR state assemblyman.

He said the matter came to light after a “whistle-blower” produced a confidential letter from UEM to the Economic Planning Unit (EPU) soon after Pakatan Rakyat took over Penang two years ago.

Sim, who showed the letter to reporters in Parliament, said the letter, dated Aug 8, 2007, was signed by UEM chief executive officer Ahmad Pardas Senin and was addressed to EPU's director-general Dr Sulaiman Mahmod.

Sim (centre) said the contents of the letter revealed, among other things, that UEM has asked for financial assistance to the tune of RM22 billion to build the bridge although the actual cost of the project is only RM4 billion.

"This is a very outrageous demand and the federal government has complied with it. We are afraid that the federal government would blindly agree to all other kinds of assistance requested by UEM,” he said.

"The letter is genuine. So far, any request from UEM has been complied with by the federal government," he added.

In the letter, UEM has also asked for a concession period of 45 years, including seeking government soft loan and grant.

Something 'amiss'

According to Sim, UEM has also requested that the toll rate be fixed at RM9.40 for the second Penang bridge. It also wants the toll price for the first bridge, currently at RM7, be increased to RM9.40, with the maximum tagged at RM11.50. This price structure will go on till 2051.

The toll collection is expected to amount to RM7 billion.

But Sim said the concession for the first bridge expires in 2018 and “so why did the letter state that it (toll price) will go on until 2051?”

He said UEM had also asked the government to scrap the 20% discount for the Touch'nGo cards.

"Lately, the government had announced it would abolish this discount, which goes to show that what the letter had stated is true. But due to public pressure, the government backed down and said the discount would only be for Penangites.

"Last week, the prime minister has said the toll price for the second bridge will be at RM9.40. Now, we are worried if the government had given in to UEM's demand," said Sim.

He added that there is something amiss in the second Penang bridge project, as the federal government is providing a huge amount of financial assistance to UEM.

Tuesday, June 22, 2010

JI briefing: 'Asri, Hadi linked to Wahhabism'Another high-level briefing was held at the Bukit Aman federal police headquarters last night as part of efforts to send out the red alert amongst the government's senior echelon on the Jemaah Islamiah (JI) threat.

Apart from the movement's terrorist threat, participants at the briefing also heard that JI subscribed to Wahhabism, an ultra-conservative, hardline form of Islam. This sparked fear among some present that a witch-hunt may be on the cards.

Wahhabism, although widely practised in Saudi Arabia, is 'not encouraged' by the Malaysian Islamic institution.

The high-ranking officials attending the meeting – among them the police task force on terrorism, public university vice-chancellors and heads of security departments – were clearly uneasy with what they heard.

This due to the deputy director of the Al-Quran and Core Knowledge of Institut Latihan Islam Malaysia, Zamihan Mat Zin who alleged a link between Wahhabism and several notable Islamic figures in the country.

Among the names mentioned were former Perlis mufti Mohd Asri Zainul Abidi, the state's current mufti Juanda Jaya, former Perlis menteri besar Shahidan Kassim and PAS president Abdul Hadi Awang.

PAS denounced the alleged link at a press conference in Parliament this morning, claiming the government was merely using the JI threat as a smokescreen to make the Islamist party a scapegoat in Malaysia's 'war against terror'.

Witch-hunt fears

Zamihan had also linked the radical Middle Eastern Islamic school of thought to local NGO Pertubuhan Jamaah Islah Malaysia (JIM), causing more uneasiness among the officers who were present at the briefing.

"We don't want this to turn into a witch-hunt," said a source who had attended the briefing.

The source also complained that the briefing by Zamihan, which did not touch on the militant aspects of Wahhabism, may have influenced university administrators unfamiliar with the subject.

"It was essentially a flawed briefing. Simply linking Wahhabism to JI can create panic among those who don't know better.

"And then people can simply accuse their enemies of being Wahhabist, and get them into trouble because of this so-called terrorism links," the source told Malaysiakini.

The police briefing, chaired by Higher Education Minister Mohamed Khaled Nordin (right) , was the second one on the JI threat in public universities.

News of the threat broke out last week after Inspector-General of Police Musa Hassan revealed that 10 foreigners had been arrested and deported since the beginning of this year under the suspicion of being JI operatives.

Musa said that the foreign suspects were trying to recruit 20 to 30 university students to join their group.

Local targets planned

Jemaah Islamiah is a militant Islamic group that has claimed responsibility for the 2002 Bali bombings (below), the 2004 bombing of the Australian embassy in Jakarta and the bombing of the JW Marriot Hotel also in Jakarta in 2003 all of which took more 300 lives.

They are also suspected to be involved in several other terror attacks across South East Asia.

The group is on the UN's list of terrorist organisations with links to the Al-Qaeda.

JI was recently reported to have been planning to blow up the Kek Lok Si Temple in Penang as well as the Sri Subramaniar Swamy Devasthanam Hindu temple at Batu Caves.

KUALA LUMPUR, June 21 — DAP chairman Karpal Singh has defended himself for insisting that PKR’s Chua Tian Chang is disqualified from his Batu parliamentary seat, saying that he would not “tell lies” to save his Pakatan Rakyat comrade.

“I am not against the PR. I am just stating what the law is. I must be frank.

“I cannot, just because it is the PR, I must tell lies,” he told reporters when approached at the Parliament lobby this evening.

When Chua, a first-term MP, was sentenced to a RM2,000 fine in default two months’ jail for biting a police constable in 2007, Karpal (picture) had immediately said that the fine had spelled out Chua’s doom.

He had noted that Article 48 of the Constitution, which states that an MP should be disqualified from his seat if he is fined not less than RM2,000 or jailed not less than one year, stipulates that Chua’s RM2,000 fine meant that his Batu seat was as good as vacant.

Karpal’s stand goes against that of Chua himself, however, who insisted that his status as Batu MP should no longer be disputed based on the judge’s reason for delivering the sentence.

High Court Justice Datuk Ghazali Cha had reduced Chua’s earlier sentence of a RM3,000 fine in default six months’ jail to a RM2,000 fine in default two months’ jail in order to avoid a by-election in Batu.

However, Karpal continued to stick to his guns today despite this and insisted that Chua should be disqualified.

He even said that the Speaker of the House was compelled to declare the Batu seat vacant once he received the sealed order of the court.

“I may be from PR but this is the law. I cannot lie and speak otherwise just because I am in the PR,” he said.

Karpal added that his comrades in the PR were welcome to blame him for speaking against a fellow PR man as he would not change his stand.

“The law is clear. I do not know why there is a controversy, I hope all this will end.

“The law states not less than RM2,000 fine which means it is RM2,000 and above (to disqualify an MP),” he said.

Karpal said that if Chua or the judge insisted on interpreting the law otherwise, both parties were wrong.

“The lawyers should have stood up and said no, please reduce the fine to less than RM2,000.

“I am not saying that it was the fault of the lawyers but it would have been the best thing to do.

“I would have done it,” he said.

Karpal insisted that his words did not mean he was “anti-Pakatan” or that he wanted to join the Barisan Nasional.

“I am not joining the BN by giving this interpretation... please,” he said.

He noted that the probable reason why none from BN was disputing Chua’s validity as an MP was because they were attempting to avoid a by-election.

“If there is a by-election, PR will win, hands down. It is a safe seat,” he said.

He however expressed regret however that if a by-election were to be held, by-election laws would prohibit Chua from recontesting the seat.

“We (Felda) are dealing with the Quebec government to build the new plant there,” he told reporters after performing the ground breaking ceremony for the Platinum Park project and witnessing the signing of a sale and purchase agreement for Menara Felda in Kuala Lumpur.

Felda is buying the 50-storey office tower at Platinum for RM640.7 million. It is being built by TTDI Development Sdn Bhd and is due to be completed in four years.

Najib said the construction of the plant is part of Felda’s plan to spread its wings internationally.

Felda bought a 100 per cent stake in TRT last August for about US$71 million .

TRT, based in Boston and Quebec and formed in 1994, comes under Felda Global Ventures (North America) Sdn Bhd.

It has a fatty acids plant in Quincy, Massachusetts in the US, which produces glycerin and another in Cincinnati which makes the basic ingredients for food products like Olestra and Omega 3, sefose (sucrose esters of fatty acids) industrial products and biodiesel.

TRT also has a seaport in Quincy, a rail loading and delivery system linked to the North American rail system and a storage tank capacity of 70,000 tons.

The takeover of TRT has enabled Felda to reach the global level in three aspects of palm oil development - oleochemicals, biodiesel and basic/food ingredients.

This provides potential for expertise and technology transfer in production, products and oleochemicals-based technology. — Bernama

Monday, June 21, 2010

KUALA LUMPUR: Although the government has repeatedly denied that it has awarded a sports betting licence to a company, an opposition MP today furnished a “documented proof” that it has indeed done so.

DAP Petaling Jaya Utara MP Tony Pua provided two documents, including a “strictly private and confidential” information memorandum by Berjaya Sports Toto Malaysia Sdn Bhd, the company that was supposed to operate the betting activities.

Shedding more light on the controversy, Pua said that Ascot Sports Sdn Bhd is the company that has been given approval to run sports betting.

"Ascot Sports was sold by (tycoon) Vincent Tan and 70 percent of it is to be owned by (his company) Berjaya Corporation Bhd.

"Berjaya Corporation owns a stake in Berjaya Sports Toto, which was supposed to operate the betting. So there are three different companies," said Pua.

According to him, Berjaya Sports Toto would not have issued the memorandum if it was not given green light by the government.

"On June 11, four days after the Finance Ministry denied issuing the licence, Berjaya Sports Toto issued the memorandum to raise up to RM800 million on medium-term notes for 10 years," said Pua.

He said that there should be some truth in the document as the adviser was Maybank and the lead managers, AmInvestment Bank and Maybank Investment Bank.

"In this 20-page document, they (Berjaya Sports Toto) reiterated that Ascot Sports has been given approval to carry out betting operations upon certain terms and conditions...” he said.

In the document, Pua revealed that 220 Sports Toto outlets will be used as distribution points, with more outlets coming up in the future.

"The plan was to be carried out in August or early September in time for the English Premier League," he added.

However, on June 7, Prime Minister Najib Tun Razak, who is also the Finance Minister, said that the government has not issued any licence to Ascot Sports.

But on June 12, Ascot Sports issued a statement to Bursa Malaysia, saying that it has received approval. On June 15, Najib persisted that no licence has been awarded, saying that he would not be making any more statements.

MARC document revealed, too

Pua also showed a document from Malaysia Rating Corporation Bhad (MARC), which gave a rating to Berjaya Sports Toto.

He said that rating is usually needed when a company receives a loan of RM800 million in order to determine the quality of the loan.

"MARC has signed 'AA-' rating to this exercise to raise money by Berjaya Sports Toto... " said Pua.

The document stated that "following a recent announcement by Berjaya Corporation on its RM545 million acquisition of a 70% stake in Ascot Sports, a licensed sports betting operator, MARC understands that Sports Toto outlets will be used as a conduit for placing sports bets.

"Sports Toto is expected to receive an agency fee based on the sales generated from betting activities at its outlets. The details, including the timeframe for the rollout of the sports betting games, are yet to be finalised," the document stated.

"This clearly shows that Ascot Sports has been given the licence to operate the betting scheme. The denial by the Finance Ministry makes a complete mockery of our financial system and stock market," said Pua.

"If I am an investor, what do I do? Do I trust the memorandum which has been verified by MARC, Ambank and Maybank or do I trust the statements issued by the PM's office?" he added.

PM 'may be techincally correct'

Pua also believed that Maybank and MARC have done their homework and verified that Berjaya Sports Toto, Berjaya Corporation and Ascot Sports have been given the nod."Otherwise, they would not have issued the document to raise up to RM800 million... " he said.

However, he said, Najib may be "technically correct" when he said that no licence has been issued, giving the impression that approval has been given but the actual physical licence has not.

"It is becoming a stupid play of words and hiding the truth. The prime minister is destroying confidence in our financial market. As prime minister and finance minister, he needs to rectify this immediately," said Pua.